APPLICATION OF A “FOREIGN JURISDICTION” CLAUSE IN THE GRANT OF AN APPLICATION FOR STAY OF PROCEEDINGS

CASE TITLE:  BUPA INSURANCE LTD v. CHAKRAVERTI & ANOR (2021) LPELR-55940(CA)

JUDGMENT DATE: 12TH NOVEMBER, 2021

PRACTICE AREA: PRACTICE AND PROCEDURE

LEAD JUDGMENT: MUHAMMED LAWAL SHUAIBU, J.C.A.

SUMMARY OF JUDGMENT:

INTRODUCTION

This appeal borders on the application of a foreign jurisdiction clause in the grant of an application for stay of proceedings.

FACTS

This is an appeal against the judgment of the High Court of Cross River State delivered by Hon. Justice A. E. Ayade on 4th November, 2016.

The Respondents, as Claimants in the trial Court, instituted an action against the Appellant vide a writ of summons claiming, among other things, declaratory reliefs, special damages in the sums of N4,746,395.20 (Four Million, Seven Hundred and Forty-Six Thousand, Three Hundred and Ninety Five Naira, Twenty Kobo), USDS 2,223,302.75 (Two Million Two Hundred and Twenty Three Thousand, Three Hundred and Two Dollar, Seventy-Five Cents), and £152,200 (One Hundred and Fifty-Two Thousand Pounds Sterling) or their equivalent in United States Dollars at the official exchange rate prevailing as at the date of instituting the suit, general and exemplary damages in the sum of 2,000,000 (Two Million Dollars) for negligence and breach of contract.

In response, the Appellant filed a motion of notice for an order of stay of proceeding in the suit instead of filing a statement of defense. The motion was predicated on the ground that the suit arose from a contract which contains a clause stipulating that the contract is to be governed by English law and that any dispute should be dealt with by the Courts in England.

After hearing parties on their respective affidavit evidence, trial Court delivered its considered ruling wherein it dismissed the application.

Dissatisfied, the Appellant has appealed.

ISSUES FOR DETERMINATION

The appeal was determined upon consideration of a lone issue viz:

Whether this suit ought to have been stayed in view of the foreign jurisdiction clause in the contract between the Appellant and the 1st Respondent.

DECISION/HELD

The appeal was held to be without merit and was dismissed. The Ruling of the trial Court was consequently upheld.

RATIOS:

• PRACTICE AND PROCEDURE – STAY OF PROCEEDINGS: Principles guiding the exercise of discretion by Courts as regards the application of a foreign jurisdiction clause in the grant of an application for stay of proceedings
• ARBITRATION AND CONCILIATION – ARBITRATION CLAUSE: Duty of Court to give effect to arbitration clause in an agreement
• PRACTICE AND PROCEDURE – PRELIMINARY OBJECTION: Whether a preliminary objection can be used to attack one or more grounds of appeal
• PRACTICE AND PROCEDURE – STAY OF PROCEEDINGS: Attitude of Court to application for stay of proceedings